BEST OF THE BROKERS
AEGON
Nomura said that it sees Aegon’s capital position as being very solid and views the firm as having a “belt and braces” approach to capital management. The broker thinks that the firm’s economic rationale for early repayment to the Dutch government is compelling and rates the stock a “buy” with a €7.00 target price.
HAMPSON INDUSTRIES
Investec has placed its Hampson Industries target price of 142p under review, believing the stock to be undervalued. The broker noted that the engineer’s recent disposal of HAM for £23.7m is dilutive to earnings, but it said the market will focus on the reduction of net debt, which has been of concern. The analysts rate the stock a “buy”.
BARRATT DEVELOPMENTS
Panmure Gordon reiterated its “sell” recommendation on Barratt Developments amid speculation over a rights issue. The broker believes the group will seek to raise £500m through an issue when it reports its full year results and expects further write-downs, which could mean the group comes close to breaching its covenants.